Universal Cables Q2 FY27 Results (NSE: UNIVCABLES)
Signal: Growth decelerated
The read
The operating trajectory is mixed: revenue grew 25.1% YoY to ₹101856.89 lakh and EBITDA margin held near 9.3%, but raw-material intensity worsened by 860bps and finance costs rose 50.5%; consolidated PAT growth to ₹6385.17 lakh was chiefly amplified by the ₹3633.80 lakh associate/JV contribution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,018.57 Cr | +25.1% | +7.8% |
| EBIT | ₹68.67 Cr | +6.3% | |
| Net profit | ₹63.85 Cr | +32.3% | |
| EPS | ₹18.4 | +32.3% | |
| EBIT margin | 9.3% |
P&L walk
Revenue rose 25.1% YoY to ₹101856.89 lakh and EBITDA margin was approximately 9.3%, but PAT growth to ₹6385.17 lakh was amplified by ₹3633.80 lakh of associate/JV profit, which represented 47.2% of consolidated PBT before tax.
Segments
There is no reportable segment split, but the consolidated result is materially lifted by the associate/JV: ₹3633.80 lakh of share profit versus standalone PAT of ₹3311.64 lakh, while operating revenue is identical on both bases.
Key positives
- Revenue reached ₹101856.89 lakh, up 25.1% YoY and 7.8% QoQ, sustaining the recent high-growth trajectory.
- Derived EBITDA increased approximately 27.9% YoY to ₹9431.86 lakh, modestly ahead of revenue growth, with EBITDA margin near 9.3%.
- PPE plus CWIP increased to ₹64459.51 lakh from ₹53298.92 lakh, while half-year capital expenditure including CWIP and advances was ₹13189.69 lakh.
- Consolidated PAT rose 32.3% YoY to ₹6385.17 lakh and EPS tracked the increase from ₹13.91 to ₹18.40 without dilution evidence.
Key concerns
- Raw-material consumption increased to 78.5% of revenue from 69.9% YoY, implying an 860bps gross-margin compression; the filing does not disclose the cause or degree of pass-through.
- Finance costs rose 50.5% YoY to ₹4071.31 lakh, materially faster than revenue growth and weighing on standalone profit conversion.
- Associate/JV profit of ₹3633.80 lakh contributed 47.2% of consolidated PBT before tax, making consolidated earnings materially less representative of the operating cable business than standalone PAT of ₹3311.64 lakh.
- Operating cash flow was negative ₹8767.19 lakh in H1FY27 versus negative ₹369.70 lakh in H1FY26, while trade receivables reached ₹136916.69 lakh and inventories ₹74243.71 lakh.
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